Beta Technologies Files for $825M IPO to Power Electric Aircraft
▼ Summary
– Beta Technologies has set its IPO share price between $27 and $33, aiming to raise up to $825 million and potentially debut with a $7.2 billion valuation.
– The company filed its IPO paperwork during the government shutdown, utilizing an SEC rule that allows filings to become effective automatically after 20 days without staff review.
– Founder and CEO Kyle Clark, a former professional hockey player and pilot instructor, chose to base the company in Vermont instead of Silicon Valley and avoided traditional venture capital.
– Beta Technologies raised $1.15 billion from institutional investors like Fidelity and Qatar Investment Authority, rather than taking venture capital funding.
– The company secured a strategic deal with GE Aerospace, which includes a $300 million investment and an equity stake to develop a hybrid-electric turbogenerator for next-generation aircraft.
Beta Technologies has officially filed for an initial public offering, aiming to secure up to $825 million in new capital to accelerate the development of its electric aircraft. According to documents submitted to the U.S. Securities and Exchange Commission, the company plans to price its shares between $27 and $33. Should the offering attract investors at the higher end of that spectrum, Beta would achieve a market valuation of approximately $7.2 billion upon its public debut.
The Vermont-based electric aviation firm, established in 2017 by its unconventional CEO Kyle Clark, proceeded with its IPO filing this week. This move came despite the ongoing government shutdown, leveraging recent SEC guidance that permits companies to have certain registration statements, including share price details, become effective automatically after a 20-day period, even in the absence of a formal staff review. This regulatory provision has enabled other companies, such as Navan, to continue advancing their own public listing plans.
Founder Kyle Clark has charted a unique course in the world of startups. A Harvard graduate, former professional hockey player, and certified flight instructor, he deliberately bypassed the traditional Silicon Valley ecosystem, opting instead to build his company in his home state of Vermont. His fundraising strategy has been equally distinctive; Beta Technologies has never accepted venture capital funding. Instead, the company has successfully raised a total of $1.15 billion from major institutional investors, including financial powerhouses like Fidelity and the Qatar Investment Authority.
In a significant development last month, Beta announced a major strategic partnership with GE Aerospace. The collaboration is centered on the joint development of a hybrid-electric turbogenerator designed for next-generation aircraft. As a core component of this agreement, GE Aerospace has committed to making a substantial $300 million investment in Beta Technologies and will also acquire an equity stake in the pioneering company.
(Source: TechCrunch)
